Rs 50k or more fine for carrying over Rs 10k in banned currency

New Delhi: The Centre is soon likely to roll out an ordinance or an executive order to declare possessing, transferring or receiving Rs 10,000 or more in banned currency notes of Rs 500 and Rs 1,000 after December 30 a punishable offence.

According to the media reports, the maximum number of scrapped currency notes, in any denominations, that a person will be allowed to possess will be 10.

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The ordinance is most likely to be issued before December 30, when the deadline for people to deposit banned currency notes they are having in their bank accounts, added the reports.

The actual punishment for breaking the proposed law is yet to be finalised but the reports suggest that a fine of minimum Rs 50,000 or five times the amount the person is carrying, is likely to be imposed.

The offence will also possess a criminal liability and a municipal magistrate will hear such cases and decide penalty.

The proposed ordinance has been prepared on the basis of recommendations of the central board of directors of the Reserve Bank of India (RBI). After December 30, the banned currency notes will only be converted in the RBI and a grace period will be announced later.

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Prime Minister Narendra Modi, on November 8, demonetised Rs 500 and Rs 1,000 notes aiming to wipe out black money and stop money laundering and counterfeiting of notes.

According to RBI's official figures, the move has already brought back 86 per cent of the total money in circulation or Rs 15.44 lakh crore. Over 13 lakh crores in old notes has already been returned to the banking system in deposits.